DOTr unveils major projects up for PPP

MANILA, Philippines — The Department of Transportation (DOTr) yesterday rallied investors to take part in some public-private partnership (PPP) projects to ensure that big-ticket infrastructure are delivered, as the government faces a widening budget deficit.

Transportation Secretary Jaime Bautista said the Marcos administration has to cut its financing for several large-scale projects, as the government rebalances its cash flow after spending hard for pandemic measures.

As such, Bautista called on the private sector to review the menu of PPP projects available for them.

For one, Bautista aired his willingness to privatize at least 10 regional airport projects after his agency received just P2.49 billion for aviation development for 2023. The DOTr had proposed a budget of P28.3 billion to fund the construction and upgrade of 50 airports nationwide.

“Some of these big-ticket projects have encountered limited budget allocations from the national government. We are, therefore, actively pursuing the PPP scheme to complete a number of these projects,” Bautista said.

“We plan to invite as many private sector participants in our infrastructure projects, such as the privatization of the EDSA carousel, operation of our seaports, privatization of 10 provincial airports, the Cebu Bus Rapid Transit project and many more,” he said.

Last week Bautista said the government and the private sector would complete around P1 trillion in airport projects in the regions by 2023.

Apart from these, the Transport chief said multiple airports across the archipelago are scheduled to be modernized through PPPs, such as the Bohol-Panglao International Airport, Laguindingan International Airport, Bicol International Airport, among others.

As for the maritime sector, the DOTr will not get any funding for the delivery of seaports in 2023. In September, Transportation Undersecretary Elmer Sarmiento said the DOTr had asked for P800 million to bankroll new seaports, only for budget officials to reject the entire request.

On land transportation, Bautista said he wants the EDSA busway privatized as soon as possible given that the government no longer has resources to improve the infrastructure. Congress has denied the DOTr’s request for P212 million to expand the EDSA busway next year.

“There is no budget for the EDSA busway next year. [Our proposal] for 2023 was denied. That’s why I’m really pushing for its privatization,” Bautista said.

The National Government budget deficit widened by 22 percent to a record P1.67 trillion last year from P1.37 trillion in 2020, leaving the Marcos administration the task of bringing down public spending to strengthen the government’s fiscal standing.